Trump reuses the weapon of trade tariffs against Brazil economy

aljazeera.net
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In a new escalation of trade tensions, the administration of US President Donald Trump proposed imposing punitive 25% tariffs on a wide range of Brazilian imports, after an investigation concluded that Brasilia was pursuing “unfair” trade practices that harm US economic interests.

US Trade Representative Jamieson Greer said that the proposed measures come within the framework of Section 301 of the US Trade Law, which is the same legal tool that the Trump administration used during its first term to impose broad duties on Chinese imports.

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The Office of the United States Trade Representative explained that the investigation, which began last year, dealt with multiple files, including electronic payment services, digital commerce, preferential fees, and protection of intellectual property rights, in addition to conditions for accessing the Brazilian market for American ethanol products.

The office added in a statement that the practices investigated “are unreasonable and constitute a burden or restriction on American commerce,” making them subject to punitive measures under Section 301 of the Trade Act of 1974.

Salvador, Brazil - March 3, 2026: Chase Bank app on smartphone screen. American bank. JPMorgan Chase. ; Shutterstock ID 2746250489; purchase_order: aj; job: ; client: ; other:
The investigation dealt with multiple files including electronic payment services (Shutterstock)

Exceptions for strategic goods

Despite the new proposal, the US administration excluded a number of important Brazilian goods from the duties, including beef, coffee, rare metals and other metals, in addition to aircraft spare parts, in a move that reflects Washington’s keenness to avoid possible disruptions in the supply chains of some vital sectors.

The Office of the Trade Representative also clarified that the proposed duties would not apply to Brazilian products that are already subject to duties imposed for national security reasons under Section 232 of the Trade Expansion Act of 1962.

The new tariffs would partially replace 50% tariffs that the Trump administration imposed last year on many Brazilian goods.

40 percentage points of those fees were related to what Washington described at the time as a response to the trial of former Brazilian President Jair Bolsonaro, a political ally of Trump.

However, the US Supreme Court invalidated those duties last February, prompting the administration to search for a new legal and commercial basis to reimpose punitive measures against Brazil.



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